Vultures gather over Argentina
15 January 2010
US courts have ruled in favour of vulture funds in a dispute over defaulted debts dating back to 2002
The case for an independent debt arbitration system grows stronger as US courts have ruled in favour of vulture funds, giving authorization to freeze Argentinean assets in New York.
The dispute is over debts dating back to 2002 when severe economic problems forced Argentina to default. Despite an agreement being reached over the debts in 2004, with the majority of bondholders agreeing to accept around one third of the price, some of the remainder was sold at a discount to the vulture funds. An increase in the debt burden would have serious impacts on the Argentinean economy and its citizens’ welfare.